The Indian government plans to extend the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme by five years, continuing support for micro food businesses with a ₹10,000 crore budget. The extension aims to help more enterprises formalize, access finance, invest in technology, reduce post-harvest losses, and expand food processing, the Ministry of Food Processing Industries outlined on August 23, 2026, according to livemint.com.
The PMFME scheme, launched to strengthen micro food processing units, provides financial assistance, skill development, and market linkages. The government’s proposal to extend the program follows its initial phase, which focused on formalizing unorganized micro food businesses and improving their competitiveness. The extension is expected to deepen these efforts by enabling greater investment in technology and infrastructure, thereby enhancing productivity and reducing wastage in the supply chain, as detailed by livemint.com.
This extension aligns with the broader government objective of positioning food processing as a growth engine for agriculture, creating jobs, and improving farmers’ market opportunities. The scheme complements other initiatives aimed at boosting the sector, which is critical to India’s economy and food security. The ₹10,000 crore allocation reflects the government’s commitment to expanding the formal food processing sector and addressing challenges such as post-harvest losses that impact farmers and consumers alike, according to livemint.com.
The Ministry of Food Processing Industries is expected to finalize the extension plan following cabinet approval. The continued funding and support under PMFME will play a key role in formalizing more micro food businesses and enhancing their access to finance and technology, with the goal of fostering sustainable growth in the sector over the next five years, as reported by livemint.com.